Operations Management

An Introduction to Linear Programming

Learning Objectives

• Definition of Linear Programming

• Applications
Definition

• Linear programming is a problem-solving approach developed to help

managers make decisions
• This is a mathematical technique designed to help operations
managers plan and make decisions necessary to allocate resources
Why Use Linear Programming

• Many operations management decisions involve trying to make the

most effective use of an organization’s resources
• Resources typically include Machinery (such as planes, in the case of
an airline), Labor (such as pilots), Money, Time, and Raw materials
(such as jet fuel)
• These resources may be used to produce products (such as machines,
furniture, food, or clothing) or services (such as airline schedules,
advertising policies, or investment decisions
Typical Applications

• A manufacturer wants to develop a production schedule and an

inventory policy that will satisfy sales demand in future periods
• A financial analyst must select an investment portfolio from a variety
of stock and bond investment alternatives. The analyst would like to
establish the portfolio that maximizes the return on investment
• A marketing manager wants to determine how best to allocate a fixed
advertising budget among alternative advertising media such as radio,
television, newspaper, and magazine
• The manager would like to determine the media mix that maximizes
advertising effectiveness
Web Resource

• https://brilliant.org/wiki/linear-programming/
Reference

• An introduction to Management Science – Quantitative Approaches

to Decision Making by Anderson
• Operations Management by Jay Heizer